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655-705 (Hard)|   Weaken|                        
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That a profit was made on tuna last year is beside the point. After all, it may well be that profits would have been higher without the campaign.

E is correct because it indicates that sales of tuna last year would likely have been much less than 10 million units had it not been for the campaign
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kevincan

E is correct because it indicates that sales of tuna last year would likely have been much less than 10 million units had it not been for the campaign

But the conclusion says the campaign did nothing to improve Dietz's economic interest. How does industry wide decline of Tuna sales weaken the line of argument?
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kevincan

E is correct because it indicates that sales of tuna last year would likely have been much less than 10 million units had it not been for the campaign

But the conclusion says the campaign did nothing to improve Dietz's economic interest. How does industry wide decline of Tuna sales weaken the line of argument?

D really says that the company made money .. it is no where indicated that the company is under loss in the past.

E says that there is industry-wide decine in sales but this campaign actually allowed the sales to increase - which says that the campain is successful and aided selling more tuna and thereby in the companys economic interest.

E
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i went for C..can someone explain why is C incorrect
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@Mohit and Dynamao

(C) A less expensive advertising campaign would have brought in significantly fewer new customers for Dietz's canned tuna than did the campaign Dietz Foods launched last year.

It tells up about the cause and effect;
expensive campaign --->more number of customers
less expensive campaign----> fewer number of customers

This may or may not be an obvious relationship.Better can be taken as an additional premise.
but we need an AC which can weaken the argument;(E) has it because it says that there was industry wise decline of tuna but somehow the campaign helped to acquire more customers though the profit was not very good.

Hope this helps !
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i went for C..can someone explain why is C incorrect


Well C states that

A less expensive advertising campaign would have brought in significantly fewer new customers for Dietz's canned tuna than did the campaign Dietz Foods launched last year

Even if the less expensive campaign would have bought few customers one cannot comment whether those fewer customers would harm or do go good to the sales , its possible that fewer customers lets say 100 new customers that the less expensive one bought actually are responsible for the entire incremental sales then there is no harm to Dietz economic interest so C is discarded.
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I am still confused about this question. By "economic interests" I would assume it means money. I understand that the campaign lead to 2 million or more cans of tuna being sold. But, if the profits of the additional cans were substantially less than the cost of the advertising campaign, how can it be said that the campaign furthered Dietz's economic interests. Please explain.
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I am still confused about this question. By "economic interests" I would assume it means money. I understand that the campaign lead to 2 million or more cans of tuna being sold. But, if the profits of the additional cans were substantially less than the cost of the advertising campaign, how can it be said that the campaign furthered Dietz's economic interests. Please explain.

lets take 5 years as 1 2 3 4 5
year 1 =30 tuna sold
year 2 =25 tuna sold
year 3 =20 tuna sold
year 4 =15 tuna sold
year 5 =10 tuna sold
now advertising campaigncame
year 6 =12 tuna sold
since tuna selling was on a steep(was decreasing ) so increase in 2 tuna dont you think furthered economically.
hope it helps

let me know if you have doubt.
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xmizer
I am still confused about this question. By "economic interests" I would assume it means money. I understand that the campaign lead to 2 million or more cans of tuna being sold. But, if the profits of the additional cans were substantially less than the cost of the advertising campaign, how can it be said that the campaign furthered Dietz's economic interests. Please explain.

lets take 5 years as 1 2 3 4 5
year 1 =30 tuna sold
year 2 =25 tuna sold
year 3 =20 tuna sold
year 4 =15 tuna sold
year 5 =10 tuna sold
now advertising campaigncame
year 6 =12 tuna sold
since tuna selling was on a steep(was decreasing ) so increase in 2 tuna dont you think furthered economically.
hope it helps

let me know if you have doubt.

Well, if you mean "economically" as in sales, then yeah, I suppose in this case, the company is furthered economically. But I think the term "economically" is vague. It can mean market share, profits, revenue, etc. If you are talking about profits, the company is not furthered economically at all since the ad campaign costs more than the profits of the additional sales, which to me, means the ad campaign actually made the company lose money.

To highlight my point, if the company decided to give all the tuna away for free, I am sure they can sell millions more cans of tuna. They might even go bankrupt in the process but in this example, it would still consider it "furthering the company economically", since there is an increase in sales. But from a profit-motive standpoint, I fail to see how this is economically beneficial.
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xmizer

Well, if you mean "economically" as in sales, then yeah, I suppose in this case, the company is furthered economically. But I think the term "economically" is vague. It can mean market share, profits, revenue, etc. If you are talking about profits, the company is not furthered economically at all since the ad campaign costs more than the profits of the additional sales, which to me, means the ad campaign actually made the company lose money.

To highlight my point, if the company decided to give all the tuna away for free, I am sure they can sell millions more cans of tuna. They might even go bankrupt in the process but in this example, it would still consider it "furthering the company economically", since there is an increase in sales. But from a profit-motive standpoint, I fail to see how this is economically beneficial.

Hi,

In almost all cases, economic interests imply profits. A company generally cannot further its economic interests by taking a hit on its bottom line or profits. The interpretation of "economic interest" is not different in this question. It means profits.

However, Option E DOES SUGGEST that the company might have made a PROFIT from the campaign.

To understand this, you need to read the passage carefully.

A year ago, Dietz Foods launched a yearlong advertising campaign for its canned tuna. Last year Dietz sold 12 million cans of tuna compared to the 10 million sold during the previous year, an increase directly attributable to new customers brought in by the campaign. Profits from the additional sales, however, were substantially less than the cost of the advertising campaign. Clearly, therefore, the campaign did nothing to further Dietz's economic interests.

Tell me when the passage is computing the profits from "additional sales", what is the additional sales it is considering? The additional sales it is looking at is 2 million cans.

However, option E suggests that the additional sales is much more than 2 millions cans (remember the word "Steep decline").

So, if the additional sales is much more than 2 million cans, then the profits from the campaign will also be much higher than as computed in the passage. It indicates that probably, the campaign did further the economic interests (profits) of the company. This thing (indicating that the opposite of conclusion is true) is the job of a weakener and option E does that aptly.

Thanks,
Chiranjeev
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A year ago, Dietz Foods launched a yearlong advertising campaign for its canned tuna. Last year Dietz sold 12 million cans of tuna compared to the 10 million sold during the previous year, an increase directly attributable to new customers brought in by the campaign. Profits from the additional sales, however, were substantially less than the cost of the advertising campaign. Clearly, therefore, the campaign did nothing to further Dietz's economic interests.
The conclusion is that the campaign was not economically beneficial because profits from sales were less than the cost of the campaign.
Which of the following, if true, most seriously weakens the argument?

(A) Sales of canned tuna account for a relatively small percentage of Dietz Foods' profits. The percentage of profit is not relevant.
(B) Most of the people who bought Dietz's canned tuna for the first time as a result of the campaign were already loyal customers of other Dietz products.Loyal customers of other products doesn't necessarily mean canned tuna profits.
(C) A less expensive advertising campaign would have brought in significantly fewer new customers for Dietz's canned tuna than did the campaign Dietz Foods launched last year. out of scope
(D) Dietz made money on sales of canned tuna last year. Last year is not relevant.
(E) In each of the past five years, there was a steep, industry-wide decline in sales of canned tuna. The industry-wide decline may have been responsible for the lower profits, rather than the effectiveness of the campaign.
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I would try a simpler approach. Sales of "Dietz's" canned Tuna increased to 12 million from 10 million last year. Although there was a two million increase because of a new advertisement campaign but the investment was more than the profit. Hence the author concludes the advertisement campaign did nothing. Any answer choice which proves the campaign at least did have some contribution is the answer. "E" states there had been a continuous decline for the last five years. Hence even if sales increased by two million in the present year the campaign must have been responsible for that.
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A year ago, Dietz Foods launched a yearlong advertising campaign for its canned tuna. Last year Dietz sold 12 million cans of tuna compared to the 10 million sold during the previous year, an increase directly attributable to new customers brought in by the campaign. Profits from the additional sales, however, were substantially less than the cost of the advertising campaign. Clearly, therefore, the campaign did nothing to further Dietz's economic interests.

Which of the following, if true, most seriously weakens the argument?

(A) Sales of canned tuna account for a relatively small percentage of Dietz Foods' profits.
(B) Most of the people who bought Dietz's canned tuna for the first time as a result of the campaign were already loyal customers of other Dietz products.
(C) A less expensive advertising campaign would have brought in significantly fewer new customers for Dietz's canned tuna than did the campaign Dietz Foods launched last year.
(D) Dietz made money on sales of canned tuna last year.
(E) In each of the past five years, there was a steep, industry-wide decline in sales of canned tuna.

D simply says that Dietz made money. How much money did it make? This we do not know.
E on the other hand shows that there was a steep decline and because of the advertising campaign, Dietz was able to sell more inspite of the trend.

Does this help?
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Now almost always on any CR question try and pre-think before moving on to answer choices.
This will help you choose the correct answer choice over an incorrect one or atleast give you an edge.

In this question the conclusion is - The campaign did nothing to further Diez economic interest.
This is based on the premise that profits from additional sales were lower than cost of advertising.

Now what can weaken this conclusion.

If it can be shown that even though profits from sale were lower than the cost of advertising but the profits were more than any previous year then this decision made good economic sense or if it can be shown than in absence of the advertising the profits would have been even lower then that could also help weaken the conclusion.
Or if it is shown that there would be long term benefits in terms of profit for the company by this decision then too the conclusion is weakened.

Answer choice E is right on the mark in this regard.


Lets see answer choice B now

(B) Most of the people who bought Dietz's canned tuna for the first time as a result of the campaign were already loyal customers of other Dietz products.
This option choice does talk about the fact that the the campaign helped increase sales of canned Tuna but what was the number of the people (mentioned in this choice) who increased the sales is not mentioned. We cannot assume that the sales of the canned tuna increased because of all first time buyers.If that were true then this would be a weakener but we do not know what is the number of first time buyers out of 12 million who have helped increase the sales.
Option choice E is a much clear and an unambiguous choice in this respect.

Hope this helps !!
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GMATNinja

Quote:
(B) Most of the people who bought Dietz's canned tuna for the first time as a result of the campaign were already loyal customers of other Dietz products.
A counterargument to the author's argument might be that the ad campaign expanded Dietz's customer base and, thus, that the initial cost of the ad campaign might be outweighed by increased profits in years to come. However, choice (B) eliminates this possible counterargument and thus strengthens the author's argument. Since we are looking for a weakening statement, choice (B) can be eliminated.


Dear GMATNinja and other experts, gmat1393, GMATNinjaTwo, nightblade354

although I read the whole tread, I am not convinced why B is incorrect.
I have a different interpretation of B, which still makes me think B is the correct answer.

B says ad champing attracts new customers who are already loyal customers of other Dietz produces. I thinks B does imply expansion of the customer base, although the number of the customer may be the same. no matter whether the number of customers increases or keeps same,B does expand the customer base. what impact the profit does not depend on how many people buy, but how much they pay.
in other words, a group of customers generally buy other Dietz products, after the ad champing, the same group customers will buy canned tuna that they did not buy in the past and continue to buy other Dietz products.

although as stimulus says ad champing attracted new customers, I think B does not contrast what stimulus says, new customers are those who did not not buy canned tuna but will begin to do so.

please help...
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GMATNinja

Quote:
(B) Most of the people who bought Dietz's canned tuna for the first time as a result of the campaign were already loyal customers of other Dietz products.
A counterargument to the author's argument might be that the ad campaign expanded Dietz's customer base and, thus, that the initial cost of the ad campaign might be outweighed by increased profits in years to come. However, choice (B) eliminates this possible counterargument and thus strengthens the author's argument. Since we are looking for a weakening statement, choice (B) can be eliminated.


Dear GMATNinja and other experts, gmat1393, GMATNinjaTwo, nightblade354

although I read the whole tread, I am not convinced why B is incorrect.
I have a different interpretation of B, which still makes me think B is the correct answer.

B says ad champing attracts new customers who are already loyal customers of other Dietz produces. I thinks B does imply expansion of the customer base, although the number of the customer may be the same. no matter whether the number of customers increases or keeps same,B does expand the customer base. what impact the profit does not depend on how many people buy, but how much they pay.
in other words, a group of customers generally buy other Dietz products, after the ad champing, the same group customers will buy canned tuna that they did not buy in the past and continue to buy other Dietz products.

although as stimulus says ad champing attracted new customers, I think B does not contrast what stimulus says, new customers are those who did not not buy canned tuna but will begin to do so.

please help...
Remember that our overall goal here is to weaken the argument that the canned tuna advertising campaign "did nothing to further Dietz's economic interests."

In line with your analysis, (B) tells us that most of the new tuna-buyers were already loyal customers of other Dietz products! So yes, it is completely possible that these same customers now spend more money on Dietz products, because now they also buy canned tuna.

But how does this actually impact the author's argument? The author already acknowledges that Dietz made additional sales of tuna after the ad campaign. Unfortunately, those additional sales did not further Dietz' economic interest, because the cost of the campaign outweighed the sales. (B) does not provide an explanation to show that the ad campaign actually benefited Dietz despite its high cost.

Now, consider the scenario in which the new customers attracted by the ad campaign were not already loyal Dietz customers. Then, perhaps these people would not only start buying tuna, but would also start to buy additional Dietz products. This could provide additional revenue, which could potentially mean that the tuna ad campaign was in Dietz' economic interest despite the costs outweighing the new sales in canned tuna. Answer choice (B) eliminates this possibility -- most new tuna customers already bought other Dietz products, so the ad campaign would not result in this additional revenue.

Answer choice (B) doesn't weaken the argument that the ad campaign "did nothing to further Dietz's economic interests," so (B) is out.

I hope that helps!
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This passage has a readily identifiable conclusion, so let's start with that. We are told that, "a year ago, Dietz Foods launched a yearlong advertising campaign for its canned tuna." The conclusion of the passage is that "the campaign did nothing to further Dietz's economic interests."

How does the author arrive at that conclusion?

  • Dietz sold 12 million cans of tuna last year (while the ad campaign was running).
  • Dietz sold only 10 million cans of tuna the previous year (before the ad campaign was started).
  • We are specifically told that this increase in sales was "directly attributable to new customers brought in by the campaign." Because this information is given, we don't have to worry about whether any assumptions are required to arrive at this intermediate conclusion.
  • However, profits from these additional sales were substantially less the cost of the ad campaign.
  • Since the costs substantially exceeded the profits, the author concludes that the ad campaign did nothing to further the company's economic interests.

Now we need to find an answer choice that, if true, most seriously weakens this argument:

Quote:
(A) Sales of canned tuna account for a relatively small percentage of Dietz Foods' profits.
Last year, the cost of the ad campaign exceeded the additional profits created by the ad campaign. Based on those facts, the author concludes that the campaign did not further the company's economic interests. Regardless of the percentage of total profits accounted for by sales of canned tuna, if costs exceeded profits, according to the author, the campaign did not further the company's economic interests. Choice (A) does not interfere with this logic and can be eliminated.

Quote:
(B) Most of the people who bought Dietz's canned tuna for the first time as a result of the campaign were already loyal customers of other Dietz products.
A counterargument to the author's argument might be that the ad campaign expanded Dietz's customer base and, thus, that the initial cost of the ad campaign might be outweighed by increased profits in years to come. However, choice (B) eliminates this possible counterargument and thus strengthens the author's argument. Since we are looking for a weakening statement, choice (B) can be eliminated.

Quote:
(C) A less expensive advertising campaign would have brought in significantly fewer new customers for Dietz's canned tuna than did the campaign Dietz Foods launched last year.
Choice (C) does not change the fact that the cost of last year's ad campaign did not exceed the additional profits created by the ad campaign last year. Choice (C) does not impact the author's reasoning and, thus, can be eliminated.

Quote:
(D) Dietz made money on sales of canned tuna last year.
We are told that Dietz profited from the additional sales ("Profits from the additional sales..."). Choice (D) does not give us any new information and does not change the fact that the campaign's costs exceeded the additional profits last year. Eliminate (D).

Quote:
(E) In each of the past five years, there was a steep, industry-wide decline in sales of canned tuna.
According to the author's argument, the company would have been better off economically if it had not run the ad campaign. The ad campaign seemingly increased costs more than it increased profits. This analysis rests on the assumption that profits would have remained the same (compared to the previous year) if the ad campaign had not been run.

But what if profits would have decreased if the ad campaign had not been run? In that case, we would have to compare the cost of the ad campaign not just to the increase in profits but to the sum of the increase in profits and the potential profit loss. Perhaps the cost of the ad campaign exceeded this sum, in which case the author's logic would fail. Choice (E) allows for this possibility by suggesting that Dietz's sales of canned tuna would have been much less than 10 million if it weren't for the ad campaign.

Choice (E) most seriously weakens the author's argument and, thus, is the best answer.

GMATNinja - Could you please help clarify a doubt I'm having regarding option C?

In the above explanation you stated that the cost of last year's campaign did not exceed the additional profits created by the ad campaign. I think it would be "did exceed", however I have another doubt regarding this one. If a cheaper ad would have meant fewer customers, it would have meant lesser sales too, making choice C the better option in my mind. Can this assumption be negated by thinking that "fewer customers does not necessarily mean lesser sales"? In that case choice C can be eliminated. Thanks for your help !
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